August 4, 2025

State Sales Tax Revenue Totaled $4.2 Billion in July

(AUSTIN) — Acting Texas Comptroller Kelly Hancock today said state sales tax revenue totaled $4.19 billion in July, 4.9 percent more than in July 2024. The majority of July sales tax revenue is based on sales made in June and remitted to the agency in July.

“Overall state sales tax collections showed strong growth last month compared with July 2024,” Hancock said. “Results from the major economic sectors were varied, but collections in July continued the trend of solid growth seen lately." 

Receipts from the sectors mainly affected by business spending were mixed, with the mining sector showing very strong growth compared to the same month last year. Remittances from the construction sector were essentially flat, while collections from the manufacturing sector were down after three consecutive months of robust growth. 

Among the large sectors driven mainly by consumer spending, the retail trade and service sectors once again increased compared with the same month a year ago. Retail trade, the largest sector, was up less than 2 percent compared to last July. Within that sector, growth in receipts from online general merchandisers continued to outpace that of other retail subsectors.

Receipts from home improvement stores were up solidly after exhibiting declines in three of the last four months, and clothing and accessory stores reported a third consecutive month of mid-single digit growth, while receipts from grocery stores and gasoline stations were slightly down from a year ago. Services sector remittances were up nearly 6 percent compared to July 2024.

Receipts from restaurants were up nearly 2 percent from a year ago but came in below the rate of inflation for food away from home.

Total sales tax revenue for the three months ending in July 2025 was up 4 percent compared with the same period a year ago. Sales tax is the largest source of state funding for the state budget, accounting for 58 percent of all tax collections.

Texas collected the following revenue from other major taxes:

• motor vehicle sales and rental taxes — $622 million, up 4 percent from July 2024;
• motor fuel taxes — $301 million, down 6 percent from July 2024;
• oil production tax — $433 million, down 22 percent from July 2024;
• natural gas production tax — $178 million, up 8 percent from July 2024;
• hotel occupancy tax — $72 million, down 4 percent from July 2024; and
• alcoholic beverage taxes — $146 million, down 3 percent from July 2024.

For details on all monthly collections, visit the Comptroller’s Monthly State Revenue Watch. For an extensive history of tax policy developments and fees since 1972, visit our updated Sources of Revenue publication.